Markets
Beginner
5 min read
Stablecoins: what they are and what can go wrong
How dollar-pegged tokens work and the risks they still carry.
The idea
Stablecoins such as USDT and USDC aim to hold a steady value of one US dollar. They are widely used as a quote currency for trading and as a place to hold value between trades.
Networks matter
The same stablecoin can exist on several blockchains (for example TRC20, ERC20 or BEP20). Always deposit and withdraw on the network selected in the form — sending on the wrong network can result in permanent loss.
Risks
Stablecoins can lose their peg, and they depend on the issuer's reserves and operations. They are not bank deposits and are not covered by deposit insurance.
This guide is general education, not investment advice. Digital assets are volatile and you can lose money.